ACGW Releases Briefing on Federalism and Federal Subsidies

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WASHINGTON–(BUSINESS WIRE)–Today, Citizens Against Government Waste (CAGW) published a new briefing note, “Federalism and Federal Grants,” co-authored by ACGW President Tom Schatz and State Government Affairs Associate Ryan Lanier, which details how the grantmaking process federal government has changed the balance of power between Washington and the states. The record amount of money provided by Congress to states through coronavirus relief bills and the bipartisan infrastructure bill has drawn even more attention to this process. This briefing note proposes a series of reforms that will reduce wasteful spending and increase the efficiency of how grant money is spent in states.

Tom Schatz and Ryan Lanier released the following statement:

“Federal grant programs to states have grown dramatically since the enactment of President Lyndon B. Johnson’s Great Society programs. The increase in expenditure has been accompanied by increased control and uniform regulations. The result is less state power and sovereignty and more opportunity for waste, fraud and abuse. Increased federal grants have made states more subject to the rules and regulations of the federal government and when federal funds run out, states find themselves bearing the full cost of programs, which always prove difficult to reduce. or to eliminate once they are in place. Reforms are needed to review the balance of power between the federal government and the states. This briefing note is essential reading because it provides an in-depth look at the history of grants and proposes reforms to the grantmaking process.

CAGW is the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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